Hino Motors, the Japanese manufacturer renowned for its commercial vehicles and engines, has announced it will dissolve its Chinese subsidiary, Shanghai Hino Engine. This decision, confirmed by Hino Motors’ board, will also be ratified by Shanghai Hino’s own resolution to disband.
Shanghai Hino Engine, established in 2003, has been a key player in manufacturing and marketing engines for commercial vehicles and construction machinery in China. The subsidiary is a joint venture, with Hino Motors holding a 70% stake and Guangzhou Automobile Group Co. Ltd. owning the remaining 30%.
According to a recent press release from Hino Motors, the decision to disband Shanghai Hino is driven by the company’s assessment that sustainable business growth is improbable. This outlook is influenced by the rising prominence of electric vehicles (EVs) and advanced construction machinery in the Chinese market.
Shanghai Hino attributed its production halt to broader market conditions, which have influenced its decision to cease operations. Production at the facility is slated to end by September 2024.
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